One.Tel quiz looms for Packer

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When former One.Tel director James Packer steps into the witness
box in the Australian Securities and Investments Commission versus
Jodee Rich and Mark Silbermann civil action hearing next month, he
can expect to be probed about his links with the failed telecom as
far back as 1995.

According to David Williams, SC, counsel for Mr Rich: "It will
be our case that Mr Packer had a far greater involvement with this
company than he admits in his affidavit, and has for many, many
years."

Mr Rich is defending a claim by ASIC that One.Tel traded while
insolvent for three months before its collapse on May 29, 2001.
ASIC is also seeking $92 million in damages.

Mr Williams alleges Mr Packer's interest and involvement as a
seed investor in One.Tel dates back four years before Publishing
and Broadcasting Ltd invested $370 million in One.Tel in 1999.

Mr Packer is scheduled to give several days of evidence in the
matter next month. On Friday his diaries were handed to the court
but their contents will remain privy to ASIC counsel and Mr Rich's
lawyers.

On Friday former PBL chief executive Peter Yates gave evidence
about two meetings, including a three- or four-hour crisis meeting
he chaired at PBL's offices on the evening of May 27, 2001,
attended by PBL executives, lawyers and accountants.

He had been summoned to the meeting by Mr Packer's secretary,
Jacqui Murray, and caught an earlier flight than scheduled from
Melbourne to be there. Mr Yates said at least 10 and possibly 20
people attended, including PBL finance executives Ashok Jacob and
Darren Miller. Lawyers for News Ltd were also there.

Mr Yates said he could not recall if James Packer or Kerry
Packer attended but he didn't think Mr Packer snr was there. Nor
could he recall if insolvency expert Steve Sherman attended or
lawyers from Minter Ellison. But corporate lawyer David Gonski was
definitely not there.

However, both James Packer and Lachlan Murdoch attended a
One.Tel presentation meeting two days later, at noon on May 29.
Also at that meeting were Mr Rich and Mr Silbermann, other One.Tel
finance executives, PBL's Darren Miller and PBL lawyer Guy Jalland.
Mr Yates had no recollection of Mr Packer throwing down a copy of a
One.Tel presentation document and walking out of the room while Mr
Silbermann was in mid-presentation.